2009 (9) TMI 30

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..... Rs.49,517.00 made by the A.O. on account of extra profit as a result of increase in weight of silver ornaments given for remaking to the Karingars and resultant addition of impurities in the said ornaments at the time of remaking of ornaments, without appreciating the facts of the case and material brought on record by the A.O." This appeal has been filed against the order of the Tribunal dated 12.10.2007 for the assessment year 1999-2000. The assessing authority had made addition of Rs.26,85,161/- towards the extra profit on the allegation that there was increase in the rate of gold ornaments given for remaking to the karigars. The assessing authority had made the addition on the basis of the similar addition being made for the assessme .....

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..... arigars alongwith increase in weight due to mixing of alloy which is always upto 9% is returned and duly recorded in the books of account. The assessee has also come with the explanation that whatever more impurity contents of alloy are mixed with the gold/silver ornaments, the same remains with the karigar who stand compensated with the wastage of gold/silver which occurs during the different activities being adopted ornaments of gold and silver. The assessee has also come with the plea that books of account of the assessee were not rejected and Assessing Officer has proceeded to make addition on the basis of estimate and on the basis of prevailing system of accounting but it is also a fact that the Assessing Officer has not cited any othe .....

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..... by the assessee and not by the karigars. No other exampler case has been cited by the Assessing Officer. Under these circumstances, the view taken by the learned CIT(A) for the assessment years 1996-97 to 1998-99 is justified, particularly when appeal of the assessee for these assessment years had been disposed off by three different learned CIT(A)s. Under these circumstances, we do not find anything on record to deviate from the well discussed finding recorded by the learned CIA(A) for assessment year 1997-98 and for the reasons recorded in that order, we are of the view that additions were rightly deleted in each year in respect of increase in weight on account of impurity content in silver/gold ornaments and all the grounds of the depar .....

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